Spanish Temu market growth and security issues: the role of inflation.

The new Chinese online trading platform owned by PDD Holding Inc appeared in Spain in the spring during an inflationary wave, but it has gotten a significant boost in recent weeks.

The Temu is currently the No. 1 shopping app among free apps in Apple's App Store, as well as the Editors'\' Choice app in the Google Play Store.

"Temu has received a good reception in Spain since its launch in April 2023," says e-commerce spokesperson THE OBJECTIVE.

The Chinese multinational company, already present in forty countries, tells this newspaper that they are currently in the initial stages of operating as a company in Spain.

"We continue to focus on exploring''Spanish consumers to offer exceptional service and unique products,' they add.

The Spanish market, like other European countries, has faced a situation where cost has become a key factor in shopping due to inflation. This situation, according to experts, "stimulates businesses such as Temu or Shein, which offer goods at very low prices and with large discounts".

Temu is running an active advertising campaign. The ads on this shopping site are continuously present on various platforms with very attractive slogans such as "Buy like a millionaire" or "Discounts up to 90%".

Therefore, its business model has raised doubts and is under investigation by the US authorities because of''illegal practices. Particularly over concerns that the company may have misused its customers' data. Temu denies these allegations.

In this regard, as sources from the platform explained to this newspaper, they have filed a lawsuit against trademark infringing websites and domains in the US in order to protect their trademarks and consumers using their marketplace.

"Fraudsters impersonate Temu on fake apps and websites to deceive users. This damages not only our reputation but also the customers who were duped into believing they were buying on Temu's platform," the company said.

The purpose of the lawsuit is to obtain a court order to protect the trademark and prevent consumers from thinking that such''websites and domains are derived from Temu.

'Defendants are misleading the public, creating a risk of confusion and harming Temu's reputation.

Differences from Shein Since Temu's inception, comparisons to Chinese fast fashion giant Shein have been almost inevitable. Besides, the business of fast or low-cost fashion has been under the watchful eye of Brussels for several years now.

With the new offering app, however, they want to differentiate themselves and claim their business model is different.

"It's not a fast fashion company," argue the s''s platform, which in addition to apparel has 30 main product categories with over 250 sub-categories. This includes apparel, pet products and home goods.

"We realize that comparing Temu to Shein is easy because of their similar apparel prices. However, the business models and consumers are quite different," they tell this newspaper.

The Temu model is a pure commerce platform with all independent third sellers, Amazon-style, they said. In addition, the Chinese company does not start manufacturing and does not have its own brands.

"Fast fashion companies produce thousands of fashion designs under their own brands every day. They hire factories to produce clothes that are sold under their own''trademarks. This contract manufacturing is the basis for 'fast fashion' business models and does not describe Temu at all," the platform sources said.